City of Laredo

CITY OF LAREDO WORKSHOP M-2009-W-01 CITY COUNCIL CHAMBERS 1110 HOUSTON STREET LAREDO, TEXAS 78040 June 29, 2009 5:30 P.M.

I. CALL TO ORDER

With a quorum present Mayor Raul G. Salinas called the meeting to order.

II. PLEDGE OF ALLEGIANCE

Mayor Raul G. Salinas led in the Pledge of Allegiance.

III. ROLL CALL

In attendance:

Raul G. Salinas, Mayor Mike Garza, Mayor Pro Tempore, District I Hector Garcia, Council Member, District II Michael Landeck, Council Member, District III Juan Narvaez, Council Member, District IV Johnny Rendon, Council Member, District V Gene Belmares, Council Member, District VI Jose Valdez, Jr. Council Member, District VII Cynthia Liendo-Espinoza, Council Member, District VIII Carlos Villarreal, City Manager Amy Sanchez, Deputy City Secretary IV Cynthia Collazo, Deputy City Manager Horacio De Leon, Assistant City Manager Jesus Olivares, Assistant City Manager Raul Casso, City Attorney

Motion to excuse Cm. Landeck.

Moved: Cm. Garcia Second: Cm. Narvaez For: 7 Against: 0 Abstain: 0

IV. This workshop will include discussions with possible action regarding the following subjects: 1. The proposed Laredo Convention Center;

City Attorney Raul Casso spoke about the recently passed HB2032 bill that now allows the City to mix taxes with the venue tax fund. He added that the question had arisen as to how to pay for the center, so the venue and hotel occupancy tax (no more than 2%) could now be used to do this.

Finance Director Rosario Cabello said that they projected $21 million in the sports venue account by the end of the year.

City Manager Carlos Villarreal stated that they needed direction from Council as to size or what they expected to spend so that he would know what to tell the financial advisor. He noted that staff would bring back a recommendation. He added that regarding the convention center and baseball stadium, one was contingent on the other.

Cm. Belmares said that they needed to focus on what brings people to Laredo, such as shopping, a golf course, and a baseball field. He felt that the baseball field was a priority more so than the convention center because it could attract people to Laredo. He also said that they should not migrate the convention center away from downtown.

Motion to locate convention center in the downtown area.

Moved: Cm. Belmares Second: Cm. Liendo Espinoza For: 5 Against: 2 Abstain: 0 Mayor Pro Tem Garza Cm. Narvaez

Motion to update the feasibility study for the site recommended from the current convention center fund.

Moved: Cm. Belmares Second: Cm. Liendo Espinoza For: 7 Against: 0 Abstain: 0

Motion to go out for Request For Proposals for hotels that may collaborate in the construction of a hotel and convention center.

Moved: Mayor Pro Tem Garza Second: Cm. Belmares For: 7 Against: 0 Abstain: 0

2. Solid Waste Department operations, budget, related matters;

Steve Geiss, Sanitation Supervisor, made the following presentation:

Solid Waste Services

Operational Analysis Current Operations Total Number of Accounts 56,500

Actual Amount Billed $9.00 Monthly Cost per Household $11.97 Revenues $6,885,281 Expenses $6,794,784 Debt Service Expense $1,322,750 Total Expenses $8,117,534 Net Gain/Loss $(1,232,253) Favorable/Unfavorable $(2.97)

Recycling Total Number of Accounts 56,500 Actual Amount Billed $2.13 Monthly Cost per Household $2.84 Revenues $1,936,529 Expenses $1,928,510 Net Gain/Loss $8,018 Favorable/Unfavorable $(0.72)

Landfill Total Number of Tons 372,742 Operational cost per ton $19.91 Revenues $7,722,798 Expenses $6,130,928 Debt Service Expense $1,290,539 Total Expenses $7,421,467 Net Gain/Loss $301,331 Favorable/Unfavorable $0.81

Creek Cleaning Total Number of Accounts 56,500 Actual Amount Billed $0.00 Monthly Cost per Household $1.99 Revenues $ Expenses $1,350,613 Net Gain/Loss $(1,350,613) Favorable/Unfavorable $(1.99)

Solid Waste Services Excluding Landfill Total Number of Accounts 56,500 Actual Amount Collected per Account $13.01 Monthly Cost per Household $16.81 Charges for Services $8,821,810 Expenses $10,073,907 Debt Service Expense $1,322,750 Total Expenses $11,396,657 Net Gain/Loss $(2,574,847) Favorable/Unfavorable $(3.80) Further Points of Consideration

Solid Waste Services

Revenue Vs. Expenses FY07-08 FY08-09 FY09-10 Revenue $15,994,226 $17,201,153 $17,037,297 Expenses $19,786,659 $18,817,106 $17,914,509

Collection Fee Comparison 2009 Laredo Corpus El Paso McAllen San Harlingen Brownsville Austin Christi Antonio Pickup 2 1 1 1 1 2 1 1 times per week Fee $13.25 $14.95 $16.50 $17.16 $17.99 $18.00 $21.62 $30.25

Proposed Rates  Federal/State Mandate Fee – No Change  Sanitation o $10.50 per month October 1, 2009 (+ $1.50) o $11.00 per month April 1, 2010 (+ $1.50) o $11.50 per month October 1, 2010 (+ $0.50) o $12.00 per month April 1, 2011 (+ $0.50)

 Landfill o + $1.50 per ton (commercial only) October 1, 2009

Cost Saving Alternatives Landfill Bonds 1998 C.O. $112,367 2002 C.O. $6,565,000 2005 C.O. $399,458 2007 C.O. $6,850,000 Total of All Landfill Bonds $13,926,825

Cost Savings Scenarios

 Plan A – 5 Day Plan  Garbage pick up twice a week  Recycling pick up – every other week  Grass clippings and small branches – every other week  Branches – one grapple per zip code  Estimated savings -- $666,800  Savings per household -- $1.01  FTE Reduction – 17

The remainder of this presentation can be viewed at the City Secretary’s Office upon request.

Cm. Belmares felt that something should be charged to the taxpayers to recycle and perhaps use drop bins rather than provide individual bins to residents.

Motion to approve Plan A.

Moved: Mayor Pro Tem Garza Second: Cm. Rendon For: 7 Against: 0 Abstain: 0

3. The proposed Municipal Golf Course; and,

Horacio De Leon, Assistant City Manager, gave the following presentation:

Municipal Golf Course Status Report

 2005 – RFP’s  2006 – Council approves Las Islitas site  2007 – City sells bond of $5.1 million and adds $500,000 to the project for a club house  Many meetings from 2007 to the present due to challenges in Utilities and the cost of construction given the budget  Last meeting to date was earlier this month and many terms and conditions have been clarified.

Developer’s Obligations  Donate the surface only of 270 acres for the golf course, additional tract of 120 acres would also be donated for recreational purposes.  Cash contribution of $1,000,000 to pay for cost of the project.  Lease of 500 acre feet per year of Class A Rio Grande River Water Rights for $1.00 per year, 20 years.  Develop, design and construction of the golf course.

City’s Obligations  City funding for the project of $5.6 million.  Construction of city utilities, capacity agreement, reservation of utility capacity.  Execution of IRS Form 8283 recognizing the donation of land for a public purpose.

Major terms and conditions pending agreement  Project timeline  Golf course development and maintenance plan  Utility service area  Budget allocation for the different categories of the project  Inclusion of any pre-development cost  Reverter clauses in the agreement (if the City abandons the operations of the golf course)  Legal language in the development agreement that would expose City in the construction process  All terms are subject to City Council approval and only reflect staff recommendations.

Cm. Rendon felt that the City needed a signature golf course as a selling point.

Assistant City Manager Horacio De Leon replied that they would like to have a signature golf course, but it would cost $2 million more.

Mayor Pro Tem Garza felt that no one would want to drive thirteen miles out of town to golf.

Cm. Rendon disagreed and felt that a signature golf course would attract people from out of town.

Motion to work with Webb County to make the golf course a better project and get additional funding.

Moved: Mayor Pro Tem. Garza Second: Cm. Garcia For: 2 Against: 5 Abstain: 0 Cm. Liendo Espinoza Cm. Valdez Cm. Rendon Cm. Narvaez Cm. Belmares

Motion fails.

Motion to initiate a development agreement that would charge $500 per lot to go into the operations of the golf course.

Moved: Mayor Pro Tem Valdez Second: Cm. Garcia For: 4 Against: 3 Abstain: 0 Cm. Valdez Cm. Liendo Espinoza Cm. Belmares

Motion to negotiate a contract within sixty days with a status report in thirty days, looking at the possibility of using convention center funds to make a signature golf course and republish the RFP if needed, as amended.

Moved: Cm. Valdez Second: Cm. Garcia For: 6 Against: 1 Abstain: 0 Mayor Pro Tem Garza

4. Downtown parking which may include plans for incentive rates and fees.

Assistant City Manager Horacio De Leon gave the following presentation:

Due to its extraordinary length, this presentation was not included in these minutes but can be viewed at the City Secretary’s Office upon request.

V. INTRODUCTORY ORDINANCE

1. Amending Section 19-362 of the Code of Ordinances in order to

1. Temporarily reduce the parking rate for passenger vehicles at Riverside Parking Lot from $1.00 an hour and $8.00 per day to $1.00 per day; and

2. Temporarily reduce the parking rate at Zaragoza Parking Lot from $2.00 per hour and $10.00 per day to $1.00 per day; and

3. Providing that this reduction will be effective for a period of 45 days from effective date;

Directing the Traffic Director to implement this temporary change; and directing the City Manager to make a report to the City Council before the end of the term of reduction in rates at those two (2) parking lots; and providing for an effective date.

Motion to approve downtown parking free for one hour through the next fiscal year as amended, including $1.00 per day for downtown employees.

Moved: Cm. Garcia Second: Cm. Belmares For: 7 Against: 0 Abstain: 0

VI. EXECUTIVE SESSION

VII. ADJOURNMENT

Motion to adjourn.

Moved: Mayor Pro Tem Garza Second: Cm. Narvaez For: 7 Against: 0 Abstain: 0

I, Gustavo Guevara, Jr., City Secretary, do hereby certify that the above and foregoing is a true and correct copy of the minutes contained in pages 01 to 07 and they are true, complete, and correct proceedings of the City Council meeting held on June 30, 2009.

______Gustavo Guevara, Jr. City Secretary